Ombudsman Deborah Glass has highlighted "monumental" failures by those in charge of Puffing Billy and groups including Victorian Railways, dating back to the 1960s, saying they valued reputational protection over the welfare of child victims.

Her investigation found Victorian Railways re-employed Whitehead after he was convicted of child sex offences in 1959 but chose not to monitor him, meaning he had unrestricted access to young volunteers for decades.

In an emotional press conference today, Minister for Tourism and Major Events John Eren said Puffing Billy management ignored repeated "cries for help" by children and their families about the abuse.

Robert Whitehead died in prison aged 84 in 2015. (9NEWS) (9NEWS)The convicted sex offender worked for Victoria's railways along with Puffing Billy. (9NEWS) (9NEWS)

"There's some vindication for the victims and obviously one of the perpetrators (Whitehead), through his time in prison, has deceased and is hopefully burning in hell," Mr Eren said.

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A second man, Anthony Hutchins, a convicted paedophile, was also previously involved with Puffing Billy.

Mr Eren accepted Ms Glass' recommendation he issue a public apology to children abused while involved with Puffing Billy, and said it would take place following private apologies.

Mr Eren announced the state government will publicly apologise Whitehead's victims. (9NEWS) (9NEWS)Ms Glass has recommended the state's Minister for Tourism and Major Events publicly apologise to victim Wayne Clarke. (9NEWS) (9NEWS)

Whitehead was first convicted and jailed in 1959 for child sex abuse and when released, was re-employed as a rail worker and volunteered with Puffing Billy, going on to assault six children between the 1960s and 1980s.

He died in jail in 2015 after pleading guilty to 24 charges.

Throughout his 30-year involvement with Puffing Billy, Ms Glass said Whitehead had unrestricted access to children, including the supervising of overnight working parties.

"Whitehead was a life-long offender whose abuse was facilitated by the wilful blindness, indifference or ineptitude of a succession of organisations from Victorians Railways to Puffing Billy," Ms Glass said.

“The actions or inaction of people in positions of authority, who should have known better, is inexcusable.

The report into Whitehead's crimes was released today. (9NEWS) (9NEWS)

"We do not know, and will never know, how many children Whitehead abused."

The investigation was sparked after victim, Wayne Clarke, in 2016 wrote to the government asking for an investigation into Whitehead and Hutchins, and their involvement with Puffing Billy.

The government has accepted all the report's recommendations in full.

Mr Eren said the entire Emerald Tourism Railway Board and Puffing Billy chief executive had resigned, with an interim group installed.

Speaking alongside Mr Eren, the acting interim chair of Puffing Billy, Jennifer Fleming, said the organisation would also issue a formal apology to victims.

The Centre Against Sexual Assault line can be contacted on (03) 9594 2289